In the markets: Markets Climb Past All-Time Highs as GDP Drops
Plus: US markets edge upwards on inflation; Nike surges despite tariffs.
Canada Stock Digest - June 27, 2025
Market Overview
S&P/TSX Composite Index: Closed at 26,697.85 CAD, up 308.85 points or 1.17% for the day.
S&P/TSX Venture Composite Index: Closed at 721.93 CAD, up 14.52 points or 2.05% for the day.
NASDAQ Composite: Closed at 20,212.90 USD, up 970.29 points or 5.04% for the day.
Dow Jones Industrial Average (DJIA): Closed at 43,505.60 USD, up 1,200.12 points or 2.84% for the day.
S&P 500: Closed at 6,150.70 USD, up 214.76 points or 3.62% for the day.
Stock & Market News
Shares Rise on China-U.S. Trade Hopes, Greenback Drops: Global markets edged higher on optimism around China-U.S. trade talks, while the U.S. dollar weakened ahead of key inflation data. The Globe and Mail
S&P 500 and Nasdaq Hit Record Highs on AI and Rate Optimism: Renewed AI investor enthusiasm and softer inflation data pushed major indexes to fresh highs. Reuters
Analyst Upgrades and Downgrades: Friday’s analyst moves focused on Alimentation Couche-Tard, which saw its target trimmed by Stifel, Desjardins, Scotia, and Jefferies, all citing U.S. same-store sales softness and uncertainty around the stalled Seven & i Holdings deal—though meal deals and Q1 trends are encouraging. TD Cowen initiated coverage on Canadian utilities, naming AltaGas its top pick with a $45 target due to its growth profile and energy exposure. Fortis, Emera, Atco, Canadian Utilities, and Hydro One were also covered, with “buy” ratings for the first two and “hold” on the others. Stifel raised AtkinsRéalis’s target to $109 on its share buyback and balance sheet flexibility. National Bank boosted Vizsla’s target to $6 after a $136M financing, calling it de-risked. Alamos Gold’s Island District tour led to a target raise to $52.25 from $51.75 on strong free cash flow outlook. ATB cut North American Construction’s target to $34 citing oil sands disruption but sees upside in 2026. Stifel trimmed Secure Waste Infrastructure’s target to $17 but maintained a “buy” on its solid cash flow profile. The Globe and Mail
Nike Shares Rally as Turnaround Gains Traction Despite Tariff Headwinds: Nike stock surged after strong earnings, suggesting its strategy shift is working even as global tariffs continue to pose challenges. The Globe and Mail CNN
Banxa to Be Acquired for $1.55/Share in All-Cash Deal: The crypto infrastructure company has accepted a buyout offer as sector consolidation ramps up. The Deep Dive
Economic News
Canada GDP Falls 0.1% in April, Dragged by Manufacturing: StatsCan confirms weak economic performance in April, driven by lower factory activity and reduced business investment. CBC BNN Bloomberg
Canada's Labour Market Softens as Job Vacancies Fall: Job vacancies dropped in Canada, signalling a cooling labour market that could ease wage pressures and support the Bank of Canada’s cautious rate stance. The Globe and Mail
May PCE Inflation Report Shows Cooling Pressures: The Fed’s preferred inflation measure rose just 0.1% month-over-month, giving hope for a potential rate cut. CNBC
World News & Politics
U.S. and Iran Resume Nuclear Talks Behind Closed Doors: Diplomatic sources say American and Iranian officials are quietly restarting nuclear program discussions despite ongoing tensions. CNN
Canadian Man Dies in ICE Custody After Medical Complaint: Ottawa is demanding answers after a Canadian citizen died while detained by U.S. immigration authorities in Florida. CBC
N.L. Hospital in Crisis After Entire Internal Medicine Team Resigns: St. Clare’s in St. John’s is scrambling after 5 internal medicine doctors quit over staff shortages and unsafe working conditions. CBC
Economic Events
8:30am GDP
Recent Earnings
TSX
Tecsys Inc (TCS)
Revenue reported at 46.55 MCAD, estimated at 45.86 MCAD
EPS reported at 0.11 CAD, estimated at 0.14 CAD
US Markets
Nike, Inc. (NKE)
Revenue reported at 11.1 BUSD, estimated at 10.73 BUSD
EPS reported at 0.14 USD, estimated at 0.13 USD
Fun Fact
🐌 Did you know that some snails can sleep for up to three years? When conditions get too harsh—like during extreme drought or cold—certain snail species enter a deep hibernation-like state called estivation. During this time, their metabolism slows down dramatically, and they seal themselves inside their shells with a mucus plug to conserve moisture. This deep rest can last months or even years until the environment becomes livable again. It’s one of nature’s most impressive survival strategies—proving that sometimes, the slow and sleepy really do win the race!
Investment Tip
🧁Gross margin expansion trends are a sharp signal of improving business quality. When a company’s gross margins rise over time, it usually means better pricing power, economies of scale, or smarter cost control. Expert investors track this closely to spot operational improvements that boost profitability—even if revenue growth is modest. It’s like running a bakery where flour costs less and cupcakes sell for more—same sales, better profits.
Have a great trading day! 😊
Disclaimer: The information provided in this newsletter is for educational purposes only and does not constitute financial advice. Always consult with a financial advisor before making investment decisions.